Which of the Following Would Be the Least Likely Result

question 134

Multiple Choice

Which of the following would be the least likely result of a binding price ceiling imposed on the market for rental cars?

• A)an accumulation of dirt in the interior of rental cars
• B)poor engine maintenance in rental cars
• C)free gasoline given to people as an incentive to a rent a car
• D)slow replacement of old rental cars with newer ones

---

Definitions:

Interest Expense

The cost incurred by an entity for borrowed funds, typically presented as an expense on the income statement.

Amortization

The process of spreading the cost of an intangible asset over its useful life.

Accrued Interest

Accrued Interest is the interest that has accumulated on a loan or bond since the last interest payment was made but has not yet been paid out.